British engineering skills in the age of steam

by Harry Kitsikopoulos (academic director, Unbound Prometheus)

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Wiki Commons. The side-lever Engine, 1849 ca.

 

Engineering skills in Britain improved during the eighteenth century but progress was not linear. My research uses a novel approach to quantifying the trends from the first appearance of the technology of steam power (1706) through to the last quarter of the century (the Watt era), using a large amount of data on fuel consumption rates.

Britain was a very unlikely candidate for the invention of steam engines, as I argue in my 2016 book, Innovation and Technological Diffusion: An Economic History of the Early Steam Engines. It was French and Italians who first rediscovered, translated and published the ancient texts of Hero of Alexandria on steam power; they also discovered the existence of vacuum in nature, the main principle of a steam engine’s working mechanism.

But Britain had two advantages: first, a divorce-obsessed king who detached the island from the Catholic dogma and its alliance with the Cartesian epistemological paradigm, both denying the existence of vacuum in nature. The same king also brought a seismic institutional transformation by passing monastic properties under the ownership of lay landlords, a class far more keen on solving the water drainage problem plaguing the mining industry in its drive to exploit mineral wealth.

Britain was also fortunate in another respect: it was relatively backward in terms of mining technology! That proved to be a good thing. While mining districts in Germany and Liège used a technology that resolved the drainage problem, Britain failed to imitate them, hence forcing itself to seek alternative solutions, thereby leading to the invention of the steam engine.

Grand inventions earn glorious references in school textbooks, but it is the diffusion of a technology that contributes to economic growth, a process that relies on the development of relevant human capital.

The records reveal that there were not much more than a dozen engineers who were active in erecting engines during the period 1706-75, including Thomas Newcomen, the obscure ironmonger from Devon who came up with the first working model. The figure increased to at least 60 during the last quarter of the century through the action of the invisible hand: the initial scarcity of such skills raised wages, which, in turn, acted as stimuli transferring talent from related engineering occupations.

My new study traces the production and marketing strategies of this group, which ranged from the narrow horizons of certain figures concentrating on the erection of engines in one locality, a single model, or focusing on one industry all the way to the global outlook of the Boulton and Watt firm.

The last question I pose is perhaps the most interesting: did British engineers get better during the eighteenth century in managing these engines?

Measuring skill is not a straightforward affair. Two well-respected experts at the time came up with tables that specified what the ideal fuel rates ought to have been for engines of different hp. When plotted in a graph these two variables depict a curve of ideal rates.

My analysis uses two distinct datasets with 111 fuel rate observations recorded in working engines – one for the older Newcomen model and another for the newer Watt engines. These actual fuel rates were plotted as bullet points around the respective ‘ideal’ curves. A progressively narrower distance between the curves and the bullet points would indicate higher efficiency and improved engineering skills.

The results reveal that for the first 25 years following the appearance of both models, there was no consistent trend: the bullet points alternated coming closer and moving away from the ideal curves. But the data also reveal that these initial patterns gave way to trends revealing consistent progress.

In an era of practical tinkerers lacking a formal educational system when it comes to this particular skill, British engineers did get better through a classic process of ‘learning-by-doing’, But this only happened after an initial stage of adjustment, of getting used to models with different working mechanisms.

Constructing Equality? Women’s wages, physical labor, and demand factors in Sweden 1550-1759

by Kathryn E. Gary, PhD candidate, Lund University

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Women were important workers in the past, but they are still under-studied and their contributions largely absent from big-picture discussions of historical living standards. This is largely because women’s work remains to some extent a black box, but recent research has both challenged assumptions about how women participated in the paid labor market (c.f. Humphries and Sarasua 2012) and provided data about women’s payment for different kinds of labor (c.f. Humphries and Weisdorf 2015). The current work contributes to both these areas, by creating series of men’s and women’s wages in early modern Sweden, and by exploring both the mechanisms behind the gender gap in pay as well as the conditions under which women enter paid labor, with the goal of better understanding work in the past in general.

Primary data come from unskilled workers in the construction industry in Southern Sweden, predominantly from the towns Malmö and Kalmar; these are combined with published data from Stockholm, also from construction workers (Jansson, Andersson Palm, and Söderberg 1991). All data are for individuals paid by the day; relative wages are simply the percentage of men’s wages that women earn.

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Figure 1 shows women’s relative wages from 1550 to 1759. Relative wages are high at the beginning of the period, around 80 percent, and increase to levels of parity in the early 17th century, after which they decline substantially, reaching as low as 40 percent during the end of the seventeenth century and into the eighteenth. This is a substantial decline over the period of not much more than a generation.
Some relative wage peaks are related to events that change both the demand for and supply of labor. Kalmar was a border town between Sweden and Denmark; from 1611 to 1613 the two countries fought the Kalmar War. Following these years women’s wages peaked, likely due to necessary rebuilding and a shortage in the supply of men. There is a wage spike in the same city following a fire in 1647 – while the national average weighs down the peak values, the deviations are still clear in the series, and when Kalmar is examined individually women’s relative wages peak as high as 1.33.

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Table 1: Women’s work days as a percentage of all workdays in Kalmar, 1614-1710

 

Women’s ability to earn high wages goes against many of our theories about women’s earning potential – women are expected to earn less than men in physical tasks, because women are not as strong as men, and so are less productive physical laborers (Burnette 2008). Other theories suggest that women face constant wage discrimination (c.f. Bardsley 1999) – but this, too, is confounded by women’s ability to out-earn men, and by the large changes in the relative wage series. Something else is happening.

To understand we must look more closely at the data. In Kalmar workers are almost universally identifiable, allowing for deeper examination of the workforce. Table 1 shows the percentage of paid workdays that were worked by women, compared with the total number of paid work days in five year periods. Comparing the proportional feminization of the workforce with the amount of work, we see that the periods with the greatest amount of work are those in which the workforce is the most feminized – these periods are also those during which women’s relative wages are highest (see figure 1).

In combination with the relationship between total paid workdays and women’s relative wages across the whole country (figure 2), we are faced with a pattern that is familiar from the first and second world wars – when labor demand is high, women enter the labor force in higher numbers and are able to command higher wages. There is less evidence that women were systematically paid less either due to discrimination or because of their lower productivity – instead, women are responsive to economic forces, and especially to demand forces.

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Figure 2: women’s relative wages and total paid workdays in Sweden, 1550-1759

 

It is simple to to extend our sense of what is ‘traditional’ deep into the past, and to apply broad categories of ‘men’s’ and ‘women’s’ work. However, when we are able to suspend our assumptions and dig deeper into the evidence, the data tell a less expected story; women in Sweden worked in physical occupations, alongside men, often for similar wages. They worked especially hard when the need was highest, and women’s wages only fell away from men’s when work became less regular and men and women weren’t employed together.

Accounting for women’s work shifts our understanding of household living standards in the long run, and provides strong evidence for what is intuitively clear: we cannot truly understand the past if we continue to discount the experiences or contribution of half the population.

The full working paper can be read here, and a shorter version from the EHS annual conference is available here.

Religion and economics: early Methodism was underpinned by sophisticated financial management

by Clive Norris (Oxford Centre for Methodism and Church History, Oxford Brookes University)

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John Wesley’s efforts to spread the Gospel throughout the British Isles and beyond in the later eighteenth century relied on resources generated and managed using a wide range of techniques. This study of contemporary financial records shows that the evangelistic energy and fervour of Methodist preachers and members was supported – but also frequently constrained – by the movement’s approach to financial management.

The central priority of Wesley’s movement or ‘Connexion’ was to supply enough preachers to meet the needs of the membership and attract new converts. Members’ dues provided the core financing for the growing cadre of travelling preachers, while tools such as central grants channelled resources from richer to poorer areas.

Although the increasing number of married preachers with children raised per capita costs, the annual preachers’ conference tried to keep the deployment of preachers within the envelope of the resources available. By 1800, preaching costs probably exceeded £40,000 a year, met by around 110,000 members.

A second preoccupation was the capital and revenue funding of the expanding network of Wesleyan chapels, which numbered almost one thousand by 1800, costing perhaps £9,000 in annual debt interest alone.

From the 1760s, increasing use was made of an essentially commercial model, overseen by a central committee of business advisers. The opportunity to provide loans at attractive interest rates was offered to wealthier members and supporters, and these both financed chapel construction and offered a good home for their surplus funds. Interest costs were met by renting out seats in chapel, though some seats were always made available free to the poor.

Proposals for new chapels were reviewed annually by the Wesleyan conference, and although many were built without its approval, the resulting pressure on the movement’s finances became marked only after 1800. Chapels also enabled the Connexion to draw income from non-members, who typically outnumbered members by three to one in congregations.

Third, Wesleyan Methodists sought to spread the Gospel through the publication and distribution of cheap and readable publications, including Charles Wesley’s hymnals.

From the 1750s, the so-called Book Room became increasingly profitable, largely because by 1780, almost every aspect of production and distribution had been brought in-house. In particular, Wesleyan preachers were exhorted to market the publications to their members and congregations, and received 10% commission on sales. By 1800, the Book Room’s profits – typically £2,000 annually – were making a significant contribution to overall Connexional finances.

Fourth, the Connexion developed a portfolio of other activities, including educational services such as Sunday schools, poor relief programmes and overseas missions, especially in the West Indies. Most of these activities were not financed directly by the membership.

A key approach was to appeal for public subscriptions, which were widely used outside Methodism to fund public buildings and services such as hospitals, but there were many variations. In the West Indies, for example, some Wesleyan missionaries supplied spiritual services to slave-owners under contract.

One major result of these developments was that the Wesleyan Methodist movement became increasingly dependent on its richer members and supporters. For example, though its areas of greatest membership strength were Yorkshire and the South West of England, subscription income came disproportionately from wealthy London.

But until well into the nineteenth century, this seems not to have blunted its expansion: membership almost doubled between 1800 and 1820. Indeed, the complex and flexible financial policies and practices that underpinned the movement were crucially important in enabling it to respond to the spiritual and (to an extent) material needs of Britain’s growing and geographically shifting population.

How new technology affects educational choices: lessons from English apprenticeships after the arrival of steam power

by Alexandra de Pleijt (Utrecht University), Chris Minns and Patrick Wallis (London School of Economics)

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Many workers today worry whether robots will do away with their jobs. Most economists argue that the effect of automation is likely to depend on what workers do. Robots may replace some types of manual work, but new jobs will also be created to design, maintain and manage automated production.

A shift towards ‘new jobs’ would mean that different skills will be valued in the future, and many policy experts have argued that secondary and post-secondary education will have to change in response. But if young people and their parents anticipate how automation will affect their job prospects, the choices made among current educational opportunities could shift ahead of any changes in what is offered.

The effects of automation on educational choice will be seen in the future. But past experience can offer some ideas as to whether the arrival of new technology affects these choices, even before the technology is widespread.

This research examines how the arrival of a new production technology affected educational choices in late eighteenth century England. The period between 1760 and 1810 is at the beginning of the largest shift in history from hand- to machine-powered production, through the invention and spread of the steam engine that powered the British Industrial Revolution.

Our research combines detailed evidence on the location and timing of the adoption of steam engines with the records of over 300,000 English apprenticeships from the rolls of the Commissioner of Stamps.

The main finding is that the arrival of steam power changed the willingness of young people to pursue apprenticeships, which for centuries had been the main route to acquiring the skills required for the production of manufactured goods. Counties saw a fall of 40-50% in the share of population entering into textile apprenticeships once a steam engine was present.

Despite the possible association with machine design and maintenance, mechanical apprenticeships also saw a decline of just under 20% following the arrival of steam. Merchant and professional apprentices, who were trading the goods produced by craft or industry, were mostly unaffected.

These findings show that the workforce responded to the emergence of technology that would dramatically change the nature of production and work in the future, but that much of the response was local. Apprenticeships fell first in northern counties where industrial towns and cities with factory-based production had emerged earlier. A similar decline in how workers were trained was not seen in southern and eastern England in the early part of the Industrial Revolution.

 

WELFARE SPENDING DOESN’T ‘CROWD OUT’ CHARITABLE WORK: Historical evidence from England under the Poor Laws

Cutting the welfare budget is unlikely to lead to an increase in private voluntary work and charitable giving, according to research by Nina Boberg-Fazlic and Paul Sharp.

Their study of England in the late eighteenth and early nineteenth century, published in the February 2017 issue of the Economic Journal, shows that parts of the country where there was increased spending under the Poor Laws actually enjoyed higher levels of charitable income.

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Edmé Jean Pigal, 1800 ca. An amputee beggar holds out his hat to a well dressed man who is standing with his hands in his pockets. Artist’s caption’s translation: “I don’t give to idlers”. From Wikimedia Commons

 

 

The authors conclude:

‘Since the end of the Second World War, the size and scope of government welfare provision has come increasingly under attack.’

‘There are theoretical justifications for this, but we believe that the idea of ‘crowding out’ – public spending deterring private efforts – should not be one of them.’

‘On the contrary, there even seems to be evidence that government can set an example for private donors.

Why does Europe have considerably higher welfare provision than the United States? One long debated explanation is the existence of a ‘crowding out’ effect, whereby government spending crowds out private voluntary work and charitable giving. The idea is that taxpayers feel that they are already contributing through their taxes and thus do not contribute as much privately.

Crowding out makes intuitive sense if people are only concerned with the total level of welfare provided. But many other factors might play a role in the decision to donate privately and, in fact, studies on this topic have led to inconclusive results.

The idea of crowding out has also caught the imagination of politicians, most recently as part of the flagship policy of the UK’s Conservative Party in the 2010 General Election: the so-called ‘big society’. If crowding out holds, spending cuts could be justified by the notion that the private sector will take over.

The new study shows that this is not necessarily the case. In fact, the authors provide historical evidence for the opposite. They analyse data on per capita charitable income and public welfare spending in England between 1785 and 1815. This was a time when welfare spending was regulated locally under the Poor Laws, which meant that different areas in England had different levels of spending and generosity in terms of who received how much relief for how long.

The research finds no evidence of crowding out; rather, it finds that parts of the country with higher state provision of welfare actually enjoyed higher levels of charitable income. At the time, Poor Law spending was increasing rapidly, largely due to strains caused by the Industrial Revolution. This increase occurred despite there being no changes in the laws regulating relief during this period.

The increase in Poor Law spending led to concerns among contemporary commentators and economists. Many expressed the belief that the increase in spending was due to a disincentive effect of poor relief and that mandatory contributions through the poor rate would crowd out voluntary giving, thereby undermining social virtue. That public debate now largely repeats itself two hundred years later.

 

Summary of the article ‘Does Welfare Spending Crowd Out Charitable Activity? Evidence from Historical England under the Poor Laws’ by Nina Boberg-Fazlic (University of Duisberg-Essen) and Paul Sharp (University of Southern Denmark). Published in  Economic Journal, February 2017

From VOX – British wellbeing 1780-1850: Measuring the impact of industrialisation on wages, health, inequality, and working time

by Daniel Gallardo Albarrán, appeared on 22nd May 2016

http://voxeu.org/article/british-wellbeing-1780-1850-impact-industrialisation

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From Positive Check – Danger to the Old Lady of Threadneedle Street?

by Patrick O’Brien (Professor Emeritus,
London School of Economics)  and Nuno Palma (Assistant Professor,
University of Groningen)
– Friday 21 October 2016

NEW EHES Working paper

The Bank Restriction Act of 1797 suspended the convertibility of the Bank of
England’s notes into gold. The current historical consensus is that the suspension was a result of the state’s need to finance the war, France’s remonetization, a loss of confidence in the English country banks, and a run on the Bank of England’s reserves following a landing of French troops in Wales.

Read the full post here: http://positivecheck.blogspot.it/2016/10/danger-to-old-lady-of-threadneedle.html

The working paper can be downloaded here: http://www.ehes.org/EHES_100.pdf

 

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How (much) were British workers paid ? Evidence beyond wage rates

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J. Cobden (1953) The White Slaves of England

Since Phelps Brown Hopkins published ‘Seven centuries’ in the mid 1950s economic historians and cliometricians have used ‘day wages’ – day rates for masons, carpenters and bricklayers taken from building accounts – to estimate the earnings of workers of the past. Whilst recent work has shown that these rates were not what the masons, carpenters and bricklayers actually received [1] many historians have been working on the means of earnings of other groups. A wage formation conference at the Institute of Historical Research on 16 September aimed to bring the notion that wages are more multifarious than day rates to the fore. The programme brought research on lead and coal miners, hostmen, keelmen, laundresses, sailors, bankers, spinners, agricultural labourers and clergy to debate, and the features that all these groups had in common in their pay before 1900 was an observation that all who attended shared.

Kicking off the day in opening remarks, Leigh Shaw-Taylor put the conclusions that authors such as Greg Clark, and Robert Allen and others have drawn from long run compilations of builder’s day rates within a theoretical context of structural change, pointing out that the role of real wages and average wages has been confused by cliometricians, and reminding us that Malthus predicted shifts in the wages of the poor, not of the average worker.

In the first presented case of the day Jane Humphries and Ben Schneider (Oxford) overturned the notion, common in recent historiography, that spinners were well paid and part of a high wage economy in England in the 18th century; rather they showed only the most productive spinners in England earned what Arthur Young described, moreover many spinners were employed by parishes at low piece rates under the poor laws. Amy Ridgway (Exeter) presented the only data from agriculture at the conference. Using the records of Kingston Lacy in Dorset she showed that the number of day labourers hired on a casual basis increased throughout the late 18th century and early 19th century, contrary to the established literature. Kathryn Gary (Lund) presented a new wage series for unskilled men in Sweden in the long run. She showed definitively that the wages unskilled men were not enough to support a family.

Four papers presented at the workshop dealt with the earnings of miners or those engaged in the coal industry. Andy Burn (Durham) showed that the keelmen of Newcastle-on-Tyne in the late 17th and early 18th century had pay that consisted of variable elements. Part was for hauling, another part for loading, and the rates varied according to location and season. Although the men were relatively well-paid when they were at work, the seasonality of the trade challenged living standards, and created a public order problem for the authorities. Tim Barmby (Newcastle) has been researching the Allendale lead miners. There men and mine owners bargained a price per fathom to be mined. To bargain effectively they needed to be able to predict, or have better information about the seams and geology that they were mining. Barmby shows that wage bargains were a means by which the mine owners extracted information from the more knowledgable miners. Unsurprisingly, the system produced unequal gains, with the best teams repeatedly winning the bargains. Guy Solomon (Exeter), who has fully quantitatively analysed Peter Kirby’s 2010 data shows that piece rates in coal mining in Northumberland brought about large variations in wage amongst workers doing the same job. Matthew Pawelski (Lancaster) showed how a Derbyshire free miner of the mid 18th century, John Naylor, used his own rights to common mining land to earn a large amount to take him out of a period of significant indebtedness. The case shows that as well as having his own resources, Naylor took local work with other employers when he could, and highlights the multifarious nature of earning for men of this class, and the role of book credit in such small enterprise.

Richard Blakemore (Reading) has spent the last three years looking at how sailors were paid. He debunked the common myth that sailors were an early modern global proletariat paid poorly wages. Instead he shows that Sailors earnings were, again, highly variable – many mariners made money from trading goods between ports. The form in which sailors were paid varied according to risk. Blakemore showed that the bargaining systems between shipowners and mariners benefited both parties at different times. Laundresses – a vital group never properly examined before – are the subject of Kathryne Crossley’s (Oxford) research. Drawing on the records of Oxford Colleges she shows that their status, and the means by which they were paid shifted over the 17th and 18th centuries. In the earlier period they operated as enterprising sole traders, in the 19th century they were integrated into the discipline of college staff. Anne Murphy (Hertfordshire) brought some badly needed research into white collar workers. Bank of England clerks had much in common with sailors – and laundresses – it turns out. The basic salary that the clerks received was at the very lowest end of white-collar earnings in in London. Variation and extra income were earned by the clerks through gratuities, frequently for favours for clients, and trading illegitimately as brokers. Judy Stephenson (Oxford) gave a review approach, centred around the question of trying to work out how representative day wages used in macroeconomics series really are of earners in London across the long eighteenth century. Early research, funded by Cambridge Humanities Grant, indicates that few London workers were paid by the day before 1800. Wouter Marchand (Utrecht) demonstrated that the pay of clergy in early modern Friesland was dependent on the quality of land that church lands produced income from. The clergy are one of those groups that economists love to refer to as sacrificing wages for status. Marchand shows that their wages were not determined by custom. The best paid clergy were in merged or combined parishes on fertile soil.

The commonalities between the cases presented at the workshop was remarkable. These kept coffee breaks and lunch and dinner abuzz with debate, conversation and connections. The most marked was the observation of varying levels of income due to the effects of piece rates, bargaining and variable pay structures. Variation in earnings of people doing the same jobs was a consistent theme throughout the cases presented. Moreover, nearly all the cases showed only small part of income came from basic pay, and auxiliary rates, gratuities, alternate employment and bargains, were used to meet the problems of information asymmetry, seasonality or uncertainty. This was directly related to the materiality of some of the occupations. It was also noted that the agency or bargaining power of workers in a number of sectors was a determinant of their income. A final comment was that that ‘custom’, which dominates a great deal of historical literature, was not mentioned all day as as a determining variable in any of the cases presented.

The conference reinforced the idea held by many participants that wages in the early modern period and nineteenth century were a more complex issue than the use of real wages in long run studies have suggested, but it also showed that the topic of wage formation is ripe for further research. The full proceedings and papers will be published at a later date.

Judy Stephenson. Judy.Stephenson@wadh.ox.ac.uk

[1] Stephenson, EcHR, forthcoming.